The Nigerian equities market depreciated by ₦136 billion at the close of trading on Wednesday after 24 stocks recorded price declines.
A total of 323.946 million stocks valued at ₦4.401bn exchanged hands in 5,168 deals.
The gain recorded in the equities market on Tuesday became eroded as the benchmark index continued on its downward trend on Wednesday. The All-Share Index shed one per cent to settle at 38,534.64 basis points while year-to-date return retreated to 43.4 per cent. Accordingly, the Nigerian Stock Exchange market capitalisation fell to ₦13.42tn from ₦13.556tn.
Price depreciations in large cap stocks – Guaranty Trust Bank Plc, Zenith Bank Plc, Nigerian Breweries Plc and Dangote Cement Plc by 4.8 per cent, 3.9 per cent, 2.6 per cent and 0.5 per cent, respectively, were the major drags to market performance, analysts at Afrinvest Securities said.
Similarly, activity level waned as volume and value traded declined by 30 per cent and 83.6 per cent to 323.946 million units and ₦4.4bn, respectively.
Sector performance was largely bearish as all indices save for the oil/gas index which appreciated 0.1 per cent following gains in Mobil Oil Nigeria Plc by 0.9 per cent, closed in the red.
The banking index depreciated the most, down by 2.2 per cent on the back of losses in GTBank and Zenith Bank Plc.
The industrial goods index followed, falling by 1.7 per cent as investors took profit in Dangote Cement and Lafarge Africa Plc.
Similarly, price depreciations in Nigerian Breweries and Cadbury Nigeria Plc dragged the consumer goods index 0.5 per cent lower. In the same vein, the insurance index dropped by 0.1 per cent due to losses in Linkage Assurance Plc, which shed 3.2 per cent.
Market breadth, which measures investor sentiment, –weakened as 19 stocks advanced against 24 stocks that declined.
The top performers were Berger Paints Nigeria Plc, FCMB Group Plc and Dangote Flour Plc, which appreciated respectively by 4.9 per cent apiece, while Presco Plc, Cadbury Nigeria Plc and GTBank declined respectively by five per cent, five per cent and 4,8 per cent to emerge as the worst performers.
The analysts added, “Today’s market performance can be largely attributed to sustained profit-taking in large cap stocks. However, we expect a kickback in subsequent trading sessions in anticipation of the usual year-end rally.”